Transport infrastructure

Matthew James, Science, Technology, Environment and Resources

Key issue
Australia’s transport infrastructure continues to attract criticism. Several major projects are proposed, but infrastructure decisions continue to be complicated by complex jurisdictional responsibilities, problematic financing arrangements and an overall lack of national coordination.

Reinforcing the idea of an infrastructure deficit, in June 2013, the advisory body Infrastructure Australia (IA) produced the National Infrastructure Plan (NIP) which stated clearly that, despite progress, much remains to be done:

Most notably, transport infrastructure construction has increased two and a half times, with over $22 billion in engineering and construction activity occurring in 2009–10 … Nonetheless, we still face a significant infrastructure deficit, estimated at around $300 billion.

For instance, the ALP favoured the Melbourne Metro urban rail tunnel project over the East-West Link road tunnel championed by the Coalition. However, it was reported that the coalition parties did not support funding for urban rail projects over regional projects, such as the inland rail scheme. The Greens supported greater urban rail spending, high-speed rail and a funding shift that prioritises sustainable transport infrastructure, such as public and active transport and freight rail.

Integrated infrastructure

Australia has nearly 600 different local, state and territory Governments that, together with the Australian Government, fund and plan infrastructure. Through this multitude of players, our infrastructure development is slow and delivery risks are high, which constrains our productivity and makes our projects less attractive for potential investors.

The NIP urges integrated infrastructure planning across all levels of government.

In May 2013, the Urban Coalition (UC), a coalition of various sustainability and development organisations, separately proposed an Urban Infrastructure Fund. The UC recommended the establishment of a new federal government department for cities and urban development and strengthening IA’s role.

Meanwhile, through IA, the National Infrastructure Construction Schedule (NICS) established the first national government infrastructure listing of committed projects as a collaborative effort between the Australian, state and territory governments and local governments. The NICS provides information on major infrastructure projects committed by governments across the country in an online database.

Financial issues

When it comes to project costs and construction times, Australia’s best efforts seem high when compared to similar projects overseas. The IA’s NIP states:

Another recent comparison shows per kilometre costs for Australian road, heavy and light rail projects toward the upper end of similar projects in developed countries around the world. Poor project governance in Australia is one major reason why projects fail to meet their timeframes, budgets and quality objectives.

Nonetheless, there are likely to be jurisdictional complexities that hamper infrastructure funding. Under the Australian Constitution, the Commonwealth has some powers in respect of transport, but responsibilities and funding for the various transport modes and key infrastructure facilities are shared between all three levels of government.

The Coalition’s infrastructure policy proposes the strengthening of IA to develop a 15-year overview list of major projects. This would be revised every five years, along with audit and evaluation responsibilities. The policy also suggests the creation of a funding and advisory unit to investigate financing options.

To achieve the best outcomes for all Australians from the limited funding available, our long term infrastructure planning decisions should be made in a transparent manner unaffected by election cycles.

With the election over, the new Parliament will need to grapple with new thinking and a wider vision in this arena for the sake of Australia’s future. Challenges will continue when it comes to the difficult task of selecting, prioritising and paying for infrastructure.